Ethereum
Ethereum price eyes $4,000 this week as network usage surges 56%
Ethereum price consolidated in a tight range of $3,550 to $3,400 over the weekend. However, spikes in on-chain activity suggest that investors are now bracing for a major shift in market dynamics in the coming week.
Ethereum Price Volatility Intensifies As ETF Launch Approaches
ETH, the second largest cryptocurrency, has been subject to intense market volatility over the past week. Prolonged delays surrounding the official launch of Newly Approved Spot ETH ETFs has triggered anxiety not only among Ethereum holders but also among investors in global crypto markets.
However, the latest filings reported by Bloomberg show that companies like Blackrock and VanEck have moved the needle in terms of final adjustments to their Ethereum ETF applications.
On June 21, Bloomberg analyst Eric Balchunas revealed that institutional fund sponsors had submitted their final S-1 filings to the U.S. Securities and Exchange Commission (SEC).
This brings applicants closer to final approval before the official listing date is announced, a move that could trigger a massive market reaction in the coming week.
The chart above shows that the ETH price fell 4% from the daily high of $3,544 recorded on Friday, June 21, before opening trading around $3,419 on Monday, June 24.
This reflects the overall crypto market trend, as investors appear unwilling to take large positions, instead adopting a neutral stance while awaiting the next SEC filing update.
Ethereum network activity increases by 56% in 7 days
In terms of price reaction, Ethereum markets did not react to the news surrounding the S1 filings on Friday. However, looking beyond the price charts reveals a significant shift in usage of the Ethereum network, a move signaling that investors are preparing for major trading activity in the coming week.
IntoTheBlock’s daily active addresses chart below tracks the total number of unique ETH wallets involved in confirmed transactions during a given trading day. This provides real-time information on changes in the level of network activity and user participation.
As the snapshot above shows, 515,610 ETH wallets made valid transactions a week ago, June 17. The network usage metric moved within a narrow 5% range until Friday, June 21, when news of the S-1 fill was announced.
Ethereum has since seen a whopping 56% spike in network activity, reaching 806,500 active ETH addresses as of the June 23 close.
When there is a significant increase in the number of addresses transacting on a network, it indicates that a large number of investors are active and may be reacting to or preparing for a major event. Essentially, it’s only a matter of time before this 56% increase in network activity is reflected in Ethereum’s price action.
Ethereum Price Forecast: Possible $4,000 Breakout?
Ethereum price consolidated between $3,550 and $3,400 over the weekend. The spikes in on-chain activity suggest that investors are bracing for a significant change in market dynamics in the coming week.
According to data from IntoTheBlock, Ethereum’s current price of $3,429.04 is at a critical juncture. The support level around $3,334, represented by the lower boundary of the Bollinger Bands, appears to be holding strong, while resistance looms near $3,575, the upper boundary band.
The market is on edge, awaiting updates on Ethereum spot ETFs from the SEC. A positive update could trigger a bullish breakout, pushing Ethereum price towards the $4,000 mark.
With significant backing from institutional investors like Blackrock and VanEck, the potential for a big price rally is high. As investors await the SEC’s decision, increased network activity, marked by a 56% increase in daily active addresses, suggests a desire to capitalize on any positive developments.
Upcoming ETF news could be the catalyst needed for a breakout. As network activity continues to grow, indicating increased investor interest, there is a good chance that Ethereum will reach new highs above $4,000 in the near term.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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